LOOKING FORW ARD
By FRA N K C. PETRINE, President and Publisher
AUTOMATIC
provisions accordingly.” Mr. Glassgold concluded.
RULINGS CLARIFY TAX SITUATIONS
Coin Machine Industries, Inc., through secre-
tary-manager Jim Gilmore, sent to members on
October 13 definite rulings and interpretations of
the new tax, obtained from Washington by George
M. Glassgold on behalf of this Association. Con
ferences were held in Washington with officials of
the Internal Revenue Department.
“ Amusement devices subject to the tax are held
to mean the so-called pin-ball and similar amuse
ment machines,” D. S. Bliss, Deputy Commis
sioner wrote. “ Devices described, such as the
‘air raider’ machine gun, the ‘anti-air craft’ ma
chine gun, the submarine gun, and the grip scale
or tester do not come within the classification of
the pin-ball or similar type of machines and are
not taxable.
“ Pin-ball and similar machines which may auto
matically deliver coin or tokens to the player are
classed as gaming devices.
“ The machine you describe as of the type which
operates by the pressing of a handle which causes
three wheels to spin and come to a stop and which
may automatically deliver coin or tokens to the
player, is classed as a gaming device and is tax
able accordingly.”
Mr. Bliss, Deputy Commissioner, also cleared
another point with this telegram : “ REFERENCE
TELEGRAM ELEVENTH PIN BALL MA
CHINES WHICH MERELY GIVE FREE PLAY
OR WHERE LOCATION OWNER OFFERS
PRIZES FOR SCORE SUBJECT AS AMUSE
MENT DEVICE TO TEN DOLLAR TA X .”
Mr. Glassgold stated that, “ Pin ball and similar
machines are taxed at $10 excepting in such cases
where coins or tokens are automatically delivered
to the player. Machines are taxed according to
their classification of manufacture, and not as to
the use to which they are put. Machines are either
amusement or gaming devices by the very nature
of their construction. Machines which have three
spinning wheels similar to the so-called ‘slot’ ma
chine, and deliver automatically, are considered
in the gaming class.
“ The field men of the Department have been
advised of this ruling and will enforce the tax
Gist of the Rulings
NO TAX on AMUSEMENT DEVICES such a*
Electric Eye Targets, Air Rifles, Grips, Baseball,
Basketball, Football, Fortune Telling, etc., which
are not of the pin game type.
$10 tax on NOVELTY pin ball and FREE
PLAY pin ball (without automatic pay-out). No
distinction is made if the location owner chooses
to give a prize to the player for obtaining a score.
$50 on GAMING DEVICES— “ slots” , console,
and pin ball— using automatic pay-outs.
COLORED BALL GUM machines not taxable.
The Department has advised that gum machines
which have colored gum balls, are NOT T A X
ABLE under the gaming provision even though
a certain colored ball will entitle the customer to
receive something of value from the location
owner, so long as the machines do not have at
tached thereto or inscribed thereon any legend
that the machine ivill offer a prize.
SHOW EXHIBIT RESERVATIONS AT PEAK
All members of Coin Machine Industries, Inc.,
received exhibit contract and floor plan for the
1942 coin machine show, on the same day, Wednes
day, October 8th. Just before going to press, I
contacted Jim Gilmore, secretary-manager of
CMI, and found him very enthusiastic about pros
pects for the 1942 show.
Gilmore made the statement that reservations
for exhibit space were practically 100% on the
first day it was possible to receive such reserva
tions, as compared to the similar first day for the
1941 show.
The strong response of these early reservations
is justification for Gilmore’s enthusiasm that the
1942 show will be in keeping with the well-known
CMI convention slogan— “ BIGGER AND BET
TER THAN EVER.”
The coin machine show will be held January 12,
13,14,15, 1942 in the Sherman Hotel.
NO "USE" TAX ON GENERAL ARCADE EQUIPMENT
Following verification from the Internal Rev
enue Department that certain classifications of
the “ use” tax on coin operated machines are offi-
AUTOMATIC AGE
6
© International Arcade Museum
AGE
October, 1941
http://www.arcade-museum.com/